In this article we propose an exercise of trade marketing in which we imagine ourselves to be a company that sells a line of products to the large-scale retail trade premium products, such as DOP extra virgin olive oil, DOP cheeses or high-quality semolina pasta. Our target audience is made up of middle-aged consumersa medium-high income and a family composition of two or three componentsOur goal is to prepare for a meeting with a GDO buyer, which in this case we assume to be Aspiag Group, a major retailer in north-eastern Italy. Below are the steps that can help us develop a winning strategy.
- STUDY THE NETWORK AND PRODUCT RANGE IN DEEP
Aspiag operates with over 540 points of sale under various brands, including despar, Eurospar, Interspar e Hyperspar, covering regions such as Veneto, Trentino, Friuli-Venezia Giulia, Emilia-Romagna and Lombardy. As Trade Marketing Manager, my task is to prepare a presentation that supports the Commercial Director, providing all the information necessary to make coincide the offer of our products with the needs of the Aspiag buyer. A meeting with a potential GDO customer always requires careful preparation. Before going to the meeting with the buyer, it is important visit the customer's points of sale to fully understand their assortment and positioning strategies. Furthermore, it is essential to use software that helps us to know the real potential that could have our own product line inserted in the customer's shelves. Only in this way is it possible to make a detailed analysis of the potential of the points of sale in relation to our products. Precise knowledge of this data is essential to decide how much invest (in terms of listings, discounts or other initiatives) based on the actual potential of the stores and not simply based on the brand's notoriety or market share. Aspiag manages 541 points of sale distributed across various formats. Of these, 336 are despar, with an average surface area of 360 m153, XNUMX are Eurospar, with an average surface area of 1230 m38, XNUMX are Interspar, with an average surface area of 2800 m4, and XNUMX are Hyperspar, with an average size of 4670 mXNUMX. Our strategy, however, cannot target all stores in the same way, since each of them addresses consumers with different characteristics.
2) USE THE SUPPORT OF A TARGETED SOFTWARE
For this purpose, we use a software called Top Sales, which allows us to analyze the catchment area of Aspiag's stores in detail. For example, we can identify the proximity stores, the Despar, which are located in areas where potential consumers have an above-average income. This is essential, since our products, positioned in a premium range, must be aimed at consumers with high purchasing power. Using Top Sales, we discover that of the 336 points of sale despar, only 169 are located in areas where the consumer income is above average. This is already an important fact, but it is not enough. I also have to understand if the consumers of these stores fall within the optimal age range for my product, i.e. between 45 and 65 years. Considering this additional filter, the Despar stores that fall within the criteria drop to 47. Finally, I have to check if these consumers belong to families with a composition of two or three members, which is our primary target. Adding this last criterion, I discover that only 25 Despar stores out of 336 fully meet all the requirements.
This type of analysis allows me to precisely identify the more suitable shops to sell my premium products, and to propose a targeted strategy to the buyer. Although not all Despar stores can be excluded from the assortment, it is possible to concentrate promotional activities and increase facings in the stores with the greatest potential.
Continuing the analysis on the points of sale Eurospar, which have a larger average size and attract consumers who drive up to five minutes from the point of sale, TopSales reveals that out of 153 stores, 96 are located in areas with consumers with an above-average income. When we add the criteria of age (33) and family composition, we get to 23 optimal stores.
A similar analysis is conducted for the points of sale Interspar, which attract customers up to eight minutes away by car, thanks to a wider assortment. In this case, out of 38 stores, 32 have a catchment area with an above-average income, but only 11 also meet the age (14) and family composition requirements.
As far as the Hyperspar, being only 4, it is not necessary to go into too much detail in the analysis. These stores, in fact, have such a wide range of references that it is likely that the buyer will want to insert us directly here, rather than in the smaller Despar.
3) DEVELOP A “CONCRETE” STRATEGY
With this data at my disposal, I can present the buyer with a detailed analysis and share with him a strategy based on concrete facts, abandoning the classic approach based only on the "role play". This type of preparation allows us to speak the same language and build a plan that maximizes the profitability both for us and for the buyer.
There is however one last aspect to consider, which perhaps the buyer will not like to deal with directly, but which, as a supplier, I cannot ignore: the profitability per square meter of selected stores. This is a key indicator, which allows us to evaluate the quality of product rotations in a store. In general, a store with a profitability higher than 6000 euros/m5000 is considered interesting, between 6000 and 5000 euros it is less attractive, while below XNUMX euros it becomes uninteresting.
using Top Sales, I discover that the Interspar stores that I have selected, and which are aimed at my ideal consumer, have an average profitability of around 6000 euros/m6, with 11 of the XNUMX stores showing particularly high profitability.
For Eurospar, the average profitability rises to over 6500 euros/m8, with 6700 highly performing stores. Finally, the selected Despars have an even higher average profitability, over 10 euros/mXNUMX, with XNUMX stores that reach peaks of excellence.
In conclusion, with this detailed study I can present myself to the Aspiag buyer knowing exactly which points of sale are the more suitable for my premium products. Although it would be ideal to enter the entire Aspiag network, some points of sale are exceptional for us, while others are less so. This information is crucial both for us, and for us to invest in a targeted manner, both for the buyer, who must maximize profitability of his offer.
